Pursuant to ARS §44-1703, "A credit services organization and its salespersons, agents and representatives who offer or provide the services of a credit services organization may not charge or receive monies or other valuable consideration before performance of the services that he or she has agreed to perform. Those activities may include; Improving a buyer's credit record, history or rating; Obtaining an extension of credit for a buyer; Providing advice or assistance to a buyer with regard to either or both.
A CSO must conform with section 44-1708 by filing an Arizona credit services organization bond. The surety bond issued by an insurer authorized to do business in the state and be filed with the State Corporation Commission. The instrument must run to the state for the benefit of any person who is damaged by any violation of the law and any person damaged by the CSO's practices. The surety bond must be equal to five per cent (5%) of the total amount of the fees charged TO buyers by the credit services organization and the buyers during the previous twelve months. The Arizona credit repair services bond may be no less than five thousand dollars ($5,000) nor more than twenty-five thousand dollars ($25,000). The bond penalty (bond amount) may conform to the following formula base on yearly receipts:
Less than $100,000: $5,000 surety bond
$100,000 - $250,000: $10,000
$250,001 - $500,000: $15,000
$500,001 - $1,000,000: $20,000
More than $1,000,000: $25,000
ARS 44-1712 states that the provisions of state law are not exclusive and do not relieve the CSO or the contracts subject to the same from compliance with any other applicable provision of law. The inclusion specifically hints at Federal Code (15 U.S. Code §1679j) that also regulates the profession. There are specific acts prohibited under federal laws. The credit service organization bond may generally be claimed upon for violations of particular state rules, rather than the CRO Act however a credit services professional must clearly understand the federal regulations.
Arizona surety bond leader, SuretyOne.com is a specialist in the bonding needs of CSOs, debt adjustment and collection agencies. We offer both the surety bonds and fidelity bonds needed by credit service professionals in all fifty states, Puerto Rico and the U.S. Virgin Islands. Questions about this surety bond? Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for live chat. An Arizona credit services organization bond is quick, easy and delivered in hours.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.